ATM cash crunch crisis: Supply of currency in abundance at all our machines, says SBI CFO

ATM cash crunch crisis: In the last 2-3 months, there has been a cash demand of Rs 40,000-45,000 crore against the usual demand of Rs 10,000-15,000 crore leading to shortages at many places. 

ATM cash crunch crisis: Supply of currency in abundance at all our machines, says SBI CFO
The State Bank of India (SBI) branch in Korattur, Chennai. Photo: IANS
Written By: ZeeBiz WebTeam
Updated: Wed, Apr 18, 2018
03:56 pm
Mumbai, ZeeBiz WebDesk
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ATM cash crunch crisis: There has been an unusual spike in cash demand at the ATMs in many parts of India, despite the currency reaching levels during pre-demonetisation period. The finance ministry will ask the I-T department to probe all the large withdrawals made in the past three months. Cash crunch has been reported in several states including Karnataka, Telangana, Andhra Pradesh, Maharashtra, Rajasthan, Uttar Pradesh and Madhya Pradesh. On the issue of cash crunch in ATMs, the largest lender State Bank of India (SBI) on Saturday, gave assurance to citizens saying their ATMs are never left dry. 

Neeraj Vyas, DMD (Chief Operating Officer), State Bank of India said, “Availability of cash in SBI ATMs has improved in the last 24 hours. Efforts are being made on a continuous basis to improve the cash availability further in a few geographies. Overall issue of less cash should come to normalcy within soonest possible time."

Vyas added, "We are constantly monitoring the situation and making immense efforts to ensure the supply of currency in abundance at all our ATMs”.

A SBI spokesperson said that in general, the normalcy rates at the bank's ATMs remains at 92%. "It had dropped to around 85 per cent yesterday. But the situation has improved today," reported by PTI. 

In the last 2-3 months, there has been a cash demand of Rs 40,000-45,000 crore against the usual demand of Rs 10,000-15,000 crore. 

The currency in circulation touched Rs 18.42 lakh crore on April 6, 2018, higher than Rs 17.97 lakh crore it was just before demonetisation on November 8, 2016, according to the latest figures by Reserve Bank of India (RBI). 

To meet the unprecedented demand, the government is planning to step up supply of cash in the banking system. RBI, which used to print Rs 500 crore to Rs 2,500 crore worth of 500-rupee notes every day, will now be printing Rs 7,000 to Rs 7,500 crore to meet the rising demand.

Meanwhile, Union finance minister Arun Jaitley assured citizens that the cash crunch is temporary and would be dealt with.

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